Scudder
Latin America Fund
Semiannual Report
April 30, 1997
Pure No-Load(TM) Funds
For investors seeking long-term growth of capital from a portfolio investing
primarily in the securities of Latin American issuers.
A pure no-load(TM) fund with no commissions to buy, sell, or exchange shares.
SCUDDER [LOGO]
<PAGE>
Table of Contents
2 In Brief
3 Letter from the Fund's Chairman
4 Performance Update
5 Portfolio Summary
6 Portfolio Management Discussion
9 Investment Portfolio
12 Financial Statements
15 Financial Highlights
16 Notes to Financial Statements
20 Report of Independent Accountants
24 Officers and Directors
25 Investment Products and Services
26 Scudder Solutions
In Brief
o Scudder Latin America Fund provided a strong total return of 25.85% for the
six-month period ended April 30, 1997.
o Brazil was the best performing Latin American stock market during the first
half of the Fund's fiscal year, and was also the Fund's largest country
weighting at the end of April, accounting for 49% of equity assets.
o We believe the outlook for the region is bright, as most Latin American
countries are experiencing healthy growth with declining inflation, although
underinvestment and low savings rates remain to be addressed over the
longer-term.
2 -- Scudder Latin America Fund
<PAGE>
Letter From the Fund's Chairman
Dear Shareholders,
We are pleased to present the report for Scudder Latin America Fund for the
semiannual period ended April 30, 1997. As outlined in the portfolio management
discussion that follows, the Fund provided a strong total return over the
six-month period of 25.85%. Healthy growth, declining inflation, and ongoing
economic reform are providing a positive investment backdrop in many Latin
American venues. We believe the Fund remains an attractive alternative for
investors seeking exposure to the opportunities for capital appreciation over
time to be found in the region.
We are also pleased to share with you the following assessment from
Morningstar, the fund rating service, of Scudder Latin America Fund. In their
March 1997 analysis, they wrote: "Scudder Latin America Fund has delivered the
goods in all types of weather. This offering boasts the best risk/reward profile
of any Latin America stock fund. The fund not only has the best three-year
return in its category, but it has been less volatile than all of its peers.
Impressively, the fund's returns have landed in the top quintile of its category
in every year since inception."
For those of you who are interested in new products and services, we
recently introduced the Scudder Pathway Series. Pathway simplifies investing
through the "fund of funds" approach offering four distinct portfolios:
Conservative, Balanced, Growth, and International. Each portfolio invests in a
select mix of Scudder Funds, providing flexibility, diversification, and
simplicity for regular and retirement plan investors. For more complete
information on Scudder products and services, please turn to page 25.
Thank you for your continued investment in Scudder Latin America Fund. If
you have questions about your account, please call our Investor Relations
representatives at 1-800-225-2470; they will be happy to assist you. You can
also obtain information by visiting our Internet web site at
http://funds.scudder.com.
Sincerely,
/s/Daniel Pierce
Daniel Pierce
Chairman,
Scudder Latin America Fund
3 -- Scudder Latin America Fund
<PAGE>
PERFORMANCE UPDATE as of April 30, 1997
- ----------------------------------------------------------------
FUND INDEX COMPARISONS
- ----------------------------------------------------------------
Total Return
Period Growth --------------
Ended of Average
4/30/97 $10,000 Cumulative Annual
- ------------------------------------------------
SCUDDER LATIN AMERICA FUND
- ------------------------------------------------
1 Year $ 13,179 31.79% 31.79%
Life of Fund* $ 22,820 128.20% 20.66%
- ------------------------------------------------
IFC LATIN AMERICA INVESTABLE TOTAL RETURN INDEX
- ------------------------------------------------
1 Year $ 12,620 26.20% 26.20%
Life of Fund* $ 16,926 69.26% 12.92%
- ------------------------------------------------
*The Fund commenced operations on December 8, 1992.
Index comparisons begin December 31, 1992.
- ----------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
- ----------------------------------------------------------------
A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:
SCUDDER LATIN AMERICA FUND
Year Amount
- ----------------------
12/92* $10,000
4/93 $10,560
10/93 $14,728
4/94 $16,604
10/94 $19,651
4/95 $13,558
10/95 $13,567
4/96 $16,623
10/96 $17,407
4/97 $21,907
MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) EUROPE INDEX
Year Amount
- ----------------------
12/92* $10,000
4/93 $10,047
10/93 $13,041
4/94 $15,042
10/94 $18,352
4/95 $11,760
10/95 $11,480
4/96 $13,412
10/96 $13,691
4/97 $16,926
The IFC Latin America Investable Total Return Index is prepared by
International Finance Corporation. It is an unmanaged, market
capitalization-weighted representation of stock performance in seven Latin
American markets, and measures the returns of stocks that are legally and
practically available to investors. Unlike Fund returns, Index returns do not
reflect fees or expenses.
- ----------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
- ----------------------------------------------------------------
A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.
<TABLE>
<S> <C> <C> <C> <C> <C>
1993* 1994 1995 1996 1997
-----------------------------------------------------------
NET ASSET VALUE......... $ 13.20 $ 20.65 $ 16.21 $ 19.70 $ 25.65
INCOME DIVIDENDS........ $ -- $ .06 $ -- $ .15 $ .26
CAPITAL GAINS
DISTRIBUTIONS........... $ -- $ .06 $ .73 $ -- $ --
FUND TOTAL RETURN (%)... 10.00 57.23 -18.34 22.60 31.79
INDEX TOTAL RETURN (%).. .47 49.71 -21.85 14.04 26.20
</TABLE>
All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not indicative of future results. Investment return and
principal value will fluctuate, so an investor's shares, when redeemed, may be
worth more or less than when purchased. If the Adviser had not maintained the
Fund's expenses, the total returns for the life of Fund period would have been
lower.
4 -- Scudder Latin America Fund
<PAGE>
PORTFOLIO SUMMARY as of April 30, 1997
- ---------------------------------------------------------------------------
GEOGRAPHICAL
(Excludes 8% Cash Equivalents)
- ---------------------------------------------------------------------------
Brazil 49%
Mexico 28%
Argentina 17%
Chile 2%
Peru 2%
Other 2%
- --------------------------------------
100%
- --------------------------------------
The Fund is overweighted in
Brazilian equities, at 49% of
equity assets.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
SECTORS
(Excludes 8% Cash Equivalents)
- --------------------------------------------------------------------------
Consumer Staples 24%
Communications 19%
Energy 16%
Financial 9%
Utilities 9%
Manufacturing 8%
Metals & Minerals 6%
Other 9%
- --------------------------------------
100%
- --------------------------------------
Many consumer-oriented
companies are positioned to
benefit from rising Latin
American incomes.
A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.
- --------------------------------------------------------------------------
TEN LARGEST EQUITY HOLDINGS
(42% of Portfolio)
- --------------------------------------------------------------------------
1. YPF S.A.
Petroleum company in Argentina
2. PETROLEO BRASILEIRO S.A.
Petroleum company
3. TELEFONOS DE MEXICO S.A. DE C.V.
Telecommunication services
4. TELECOMUNICACOES DE SAO PAULO S.A.
Telecommunication services in Brazil
5. COMPANHIA CERVEJARIA BRAHMA
Leading beer producer and distributor in Brazil
6. COMPANHIA ENERGETICA DE MINAS GERAIS
Electric power utility in Brazil
7. TELECOMUNICACOES BRASILEIRAS S.A.
Telecommunication services
8. BANCO ITAU S.A.
Bank in Brazil
9. KIMBERLY CLARK DE MEXICO S.A. DE C.V.
Producer of consumer paper products
10. COMPANHIA VALE DO RIO DOCE
Mining and industrial complex in Brazil
Top holdings include energy
companies and other
infrastructure providers
supporting Latin American
growth.
For more complete details about the Fund's investment portfolio, see page 9.
A monthly Investment Portfolio Summary and quarterly Portfolio Holdings are
available upon request.
5 -- Scudder Latin America Fund
<PAGE>
Portfolio Management Discussion
Dear Shareholders,
Scudder Latin America Fund enjoyed a strong increase in its net asset value for
the six months ended April 30, 1997. At that date, the Fund's net asset value
per share was $25.65, up from $20.63 as of October 31, 1996, contributing to a
total return of 25.85% for the semiannual period. The unmanaged International
Finance Corporation's Latin America Investable Total Return Index posted a
23.63% return for the same period.
Regional Recovery Continues
Latin America has staged a remarkable comeback from the days of the 1994-95
Mexican financial crisis. The combination of an improved macroeconomic
environment, a favorable flow of funds, and generally attractive starting
valuations gave rise to a strong stock market for the six month period, as the
following table indicates.
THE PRINTED DOCUMENT CONTAINS A BAR CHART HERE
BAR CHART TITLE: Investment Returns in Latin American Stock Markets
for the six months ended April 30, 1997
BAR CHART DATA:
Argentina +26.4%
Brazil +39.4%
Chile + 4.9%
Colombia +28.7%
Mexico +17.5%
Peru +18.8%
Venezuela + 6.6%
IFC Latin America
Investable Index +23.7%
Source: IFC Emerging Markets Database.
Past performance is no indication of future results.
Brazil was the best performing Latin American stock market during the first half
of the Fund's fiscal year, with a 39.4% total return. Brazil is also the Fund's
largest country weighting, accounting for 49% of equity assets. This exposure
contributed significantly to the Fund's investment returns. The Fund is also
overweight versus the IFC Index in Argentina, due principally to the major
investment the Fund has made in Argentine oil and gas companies. The 26.4%
return of the Argentine equity market was an additional source of investment
performance for the Fund over the six months.
Chile once again underperformed all of the other country components of the IFC
Latin America Investable Index, and our underweight exposure to that market was
a positive factor for Fund performance. While the Fund has had a low exposure to
Chilean companies over the years due to valuation considerations, price weakness
for some Chilean stocks associated with 1996 year-end tax loss selling presented
us with an opportunity to add selectively to the Fund's investments in that
country. The Fund's country allocations on April 30, 1997 are shown in the
accompanying table. For comparison purposes, we also show the country weightings
for the IFC Latin America Investable Index.
6 -- Scudder Latin America Fund
<PAGE>
Fund IFC Index
Country Weighting* Weighting
- ------------------------------------------------------
Argentina 17% 11%
Brazil 49% 38%
Chile 2% 15%
Colombia 1% 4%
Mexico 28% 27%
Peru 2% 3%
Venezuela 1% 2%
- ------------------------------------------------------
* Excludes Fund assets in cash equivalents.
Outlook: Favorable Investment Fundamentals
One legacy of the Mexican peso crisis is that governments are paying far more
attention to the financing of current account deficits, the health of their
commercial banking systems, and the necessity of encouraging higher rates of
domestic savings. It is little wonder that investors' perceptions of Latin
American risk have changed dramatically in the past few years.
With inflation falling across the region and large sectors of most Latin
American economies freed from governmental managerial control, business and
consumer confidence is also on the rise. This is, to be sure, mirrored in the
bullish behavior of stock markets. But of greater long-term significance, with
an increasing number of corporations now enjoying access to cheaper and
longer-term capital than global markets were willing to provide just a few years
ago, capital spending is on a sharp upturn and investment-driven economic growth
seems assured for most countries.
- ------------------------------------------------------
Economic Growth Forecasts (GDP)
- ------------------------------------------------------
Country 1996 1997* 1998*
- ------------------------------------------------------
Argentina 4.4% 5-6% 4-5%
Brazil 2.9% 4-5% 4-5%
Chile 7.2% 5-6% 5-6%
Colombia 2.1% 3-4% 4-5%
Mexico 5.1% 5-6% 4-5%
Peru 2.8% 4-5% 4-5%
Venezuela (1.6%) 4-5% 5-6%
- ------------------------------------------------------
* Estimated. Estimates may prove inaccurate and, even if accurate, may not
correlate with market activity. Source: Scudder Latin America Group.
Latin America truly appears to be marching to a different drummer. For the first
time in decades, sound money, low inflation, falling interest rates, and healthy
growth dominate most forecasts. With country risk considerations of diminishing
importance, investors are now concentrating on company-specific issues such as
cash flow, balance sheets, corporate fundamentals, and earnings growth. This
approach is consistent with our
7 -- Scudder Latin America Fund
<PAGE>
portfolio management style of focusing on quality companies with a record of
reinvesting their cash flow in their businesses at attractive rates of return.
We believe the outlook for the region is bright. Most countries are now growing
at rates sufficient to absorb the annual increase in the workforce and to
redress problems of low per capita incomes. Few countries, however, are growing
at their full potential due to inadequate rates of savings and investment.
Underinvestment and low savings rates are structural problems which are now
being addressed by governments but, where the solution is inherently a long-term
proposition.
Sincerely,
Your Portfolio Management Team
/s/Edmund B. Games, Jr. /s/Tara C. Kenney
Edmund B. Games, Jr. Tara C. Kenney
/s/Paul H. Rogers
Paul H. Rogers
8 -- Scudder Latin America Fund
<PAGE>
Investment Portfolio as of April 30, 1997
<TABLE>
<CAPTION>
Principal Market
Amount (U.S.$) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements 5.6%
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase Agreement with Donaldson, Lufkin & Jenrette dated 4/30/97 at 5.375%, to be
repurchased at $50,835,589 on 5/1/97, collateralized by a $48,888,000 U.S. Treasury -----------
Note, 7.75%, 1/31/00 (Cost $50,828,000) ................................................ 50,828,000 50,828,000
-----------
Commercial Paper 2.2%
- ------------------------------------------------------------------------------------------------------------------------------
-----------
Ford Motor Credit Co. Discount Note, 5/21/97 (Cost $19,939,111) .......................... 20,000,000 19,939,111
-----------
Shares
- ------------------------------------------------------------------------------------------------------------------------------
Equity Securities 92.2%
- ------------------------------------------------------------------------------------------------------------------------------
Argentina 15.9%
Astra CAPSA (Petroleum company) .......................................................... 6,483,630 11,218,307
BI S.A. "A" (Venture capital company) (b) ................................................ 3,000,000 3,330,900
Bagley y Cia Ltd. S.A."B" (Producer of cookies and biscuits) ............................. 2,868,651 5,881,587
Nobleza Piccardo (Tobacco company) ....................................................... 1,396,026 7,190,577
Perez Companc S.A. "B" (Industrial conglomerate) ......................................... 3,502,440 28,408,908
Quilmes Industrial S.A. (Leading beer distributor) ....................................... 897,000 8,297,250
Quilmes Industrial S.A. (ADR) ............................................................ 518,500 5,768,313
Telecom Argentina S.A. "B" (Telecommunication services) .................................. 1,851,099 9,164,269
Telecom Argentina S.A. (ADR) ............................................................. 100,000 5,000,000
Telefonica de Argentina S.A. "B" (Telecommunication services) ............................ 1,502,068 4,987,589
Telefonica de Argentina S.A. (ADR) ....................................................... 200,000 6,650,000
YPF S.A. "D" (ADR) (Petroleum company) ................................................... 1,750,000 48,343,750
-----------
144,241,450
-----------
Brazil 45.2%
Aracruz Celulose S.A. (ADR) (Producer of eucalyptus kraft pulp) .......................... 400,400 7,557,550
Banco Bradesco S.A. (pfd.) (Commercial bank) ............................................. 3,011,277,111 24,918,180
Banco Itau S.A. (pfd.) (Bank) ............................................................ 63,009,600 34,068,851
Centrais Electricas Brasileiras S/A "B" (pfd.) (Electric utility) ........................ 60,000,000 27,984,390
Centrais Eletricas de Santa Catarina S.A. "B" (pfd.) (Electric power distributor) ........ 1,495,000 2,108,703
Companhia Cervejaria Brahma (pfd.) (Leading beer producer and distributor) ............... 53,026,569 36,075,718
Companhia Energetica de Minas Gerais (pfd.) (Electric power utility) ..................... 780,875,000 35,612,805
Companhia Paranaense de Energia (pfd.) (Electric utility) ................................ 40,000,000 622,502
Companhia Paranaense de Energia (voting) ................................................. 503,400,400 7,758,458
Companhia Petroquimica do Sul S.A. (voting) (Chemical producer) .......................... 53,808,000 2,327,489
Companhia Siderurgica Paulista "B" (pfd.) * (Steel producer) ............................. 3,066,700 2,105,121
Companhia Suzano de Papel e Celulose S.A. (pfd.) (Paper products) ........................ 2,160,840 4,734,362
Companhia Vale do Rio Doce (pfd.) (Diverse mining and industrial complex) ................ 1,170,800 29,670,469
</TABLE>
The accompanying notes are an integral part of the financial statements.
9 -- Scudder Latin America Fund
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Empresa Brasileira de Compressores S.A. (pfd.) (Manufacturer of compressors) ............. 2,592,000 1,218,675
Industrias Klabin de Papel e Celulose S/A (pfd.) (Producer of paper products, newsprint,
and cardboard boxes) ................................................................... 7,789,000 8,056,702
Investimentos Itau S/A (pfd.) (Diversified holding company involved in finance, chemicals,
electronics and wood products) ......................................................... 7,081,000 5,992,665
Lojas Americanas S.A. (voting) (Discount department store chain) ......................... 425,608,380 5,322,856
Petroleo Brasileiro S.A. (pfd.) (Petroleum company) ...................................... 230,000,000 48,337,957
S/A White Martins (voting) (Chemical company) ............................................ 5,390,955 18,350,893
Sadia Concordia S/A (pfd.) (Processed poultry, pork and beef) ............................ 7,264,000 6,215,845
Telecomunicacoes Brasileiras S.A. (ADR) (Telecommunication services) ..................... 300,000 34,425,000
Telecomunicacoes de Sao Paulo S.A. (pfd.) (Telecommunication services) ................... 130,410,000 37,034,012
Telecomunicacoes do Parana S/A (pfd.) (Telecommunication services) ....................... 10,274,986 7,053,213
Usinas Siderurgicas de Minas Gerais S/A (pfd.) (Steel manufacturer) ......................19,000,000,000 22,511,637
-----------
410,064,053
-----------
Chile 1.6%
Compania de Telefonos de Chile, S.A. (ADR) (Telecommunication services) .................. 222,500 7,203,438
Enersis S.A. (ADR) (Generator and distributor of electricity Chile and Argentina) ........ 100,000 3,150,000
Santa Isabel S.A. (ADR) (Supermarket chain) .............................................. 160,000 3,900,000
-----------
14,253,438
-----------
Colombia 1.4%
Bavaria S/A (Producer and distributor of beer and other malt beverages, mineral water
and soft drinks) ....................................................................... 901,761 6,783,027
Colombiana de Tabaco S.A. (Tobacco producer) ............................................. 821,871 2,511,476
Compania Nacional de Chocolates (Chocolate and coffee producer) .......................... 280,143 2,502,335
Industrias Alimenticias Noel* (Food products company) .................................... 240,000 1,164,405
-----------
12,961,243
-----------
Mexico 25.8%
Apasco, S.A. de C.V. (Cement producer) ................................................... 1,100,000 6,506,009
Cifra S.A. de C.V. "A" (Discount retailer) ............................................... 1,834,857 2,747,725
Cifra S.A. de C.V. "C" ................................................................... 16,002,000 24,527,070
Fomento Economico Mexicano, S.A. de C.V. "B" (Producer of beer and soft drinks) .......... 3,782,000 17,752,293
Grupo Continental, S.A. "B" (Soft drink bottler) ......................................... 2,736,700 15,153,187
Grupo Embotelladoras Unidas S.A. de CV "B" (Soft drink producer) ......................... 1,879,134 3,736,276
Grupo Financiero Inversiones Bursatiles S.A. "B" (Banking and insurance services) ........ 1,652,000 5,654,615
Grupo Herdez S.A. de C.V. "A" (Producer of packaged foods) ............................... 6,952,000 2,755,779
Grupo Industrial Bimbo, S.A. de C.V. "A" (Producer of bread and other baked goods) ....... 1,804,000 11,248,751
</TABLE>
The accompanying notes are an integral part of the financial statements.
10 -- Scudder Latin America Fund
<PAGE>
<TABLE>
<CAPTION>
Market
Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Grupo Modelo S.A. "C" (Leading brewery) .................................................. 2,642,000 16,025,219
Kimberly Clark de Mexico S.A. de C.V. "A" (Consumer paper products and newsprint) ........ 9,200,000 33,458,755
Organizacion Soriana S.A. de C.V. "B" (Retailer) ......................................... 6,381,022 13,891,862
Panamerican Beverages Inc. "A" (Soft drink bottler) ...................................... 811,600 23,536,400
Pepsi-Gemex S.A. * (Soft drink distributor) .............................................. 6,544,500 3,335,459
Pepsi-Gemex S.A. (ADR)* .................................................................. 529,250 6,152,531
Telefonos de Mexico S.A. de C.V. "L" (ADR) (Telecommunication services) .................. 1,150,000 47,437,500
-----------
233,919,431
-----------
Panama 0.4%
Banco Latinoamericano de Exportaciones, S.A. "E" (Bank) .................................. 82,100 3,766,338
-----------
Peru 1.5%
Cementos Lima S.A. "T" (Cement producer) ................................................. 1,606,933 2,954,586
Cerveceria Backus & Johnston S.A. "T" (Brewery) .......................................... 5,412,813 4,712,092
Embotelladora Latinoamericana S.A. "T"* (Soft drink bottler) ............................. 2,523,955 3,077,994
Industrias Pacocha S.A. "T" (Household products and food producer) ....................... 4,574,692 2,489,044
-----------
13,233,716
-----------
Venezuela 0.4%
Mavesa S.A. (ADR) (Food processor) ....................................................... 582,875 4,007,266
- ------------------------------------------------------------------------------------------------------------------------------
Total Equity Securities (Cost $612,172,510) 836,446,935
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total Investment Portfolio - 100.0% (Cost $682,939,621) (a) 907,214,046
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
(a) The cost for federal income tax purposes was $688,621,654. At April 30,
1997, net unrealized appreciation for all securities based on tax cost was
$218,592,392. This consisted of aggregate gross unrealized appreciation
for all securities in which there was an excess of market value over tax
cost of $243,154,377 and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value of
$24,561,985.
(b) Securities valued in good faith by the Valuation Committee of the Board of
Directors at fair value amounted to $3,330,900 (.36% of net assets). Their
values have been estimated by the Valuation Committee in the absence of
readily ascertainable market values. However, because of the inherent
uncertainty of valuation, those estimated values may differ significantly
from the values that would have been used had a ready market for the
securities existed, and the difference could be material. The cost of
these securities at April 30, 1997 aggregated $3,000,000. These securities
may also have certain restrictions as to resale.
The accompanying notes are an integral part of the financial statements.
11 -- Scudder Latin America Fund
<PAGE>
Financial Statements
Statement of Assets and Liabilities
as of April 30, 1997
<TABLE>
<S> <C>
Assets
- ------------------------------------------------------------------------------------------------------------------------------
Investments, at market (identified cost $682,939,621) .................. $ 907,214,046
Cash ................................................................... 963
Foreign currency holdings, at market (identified cost $170,974) ........ 170,976
Receivable for investments sold ........................................ 2,007,178
Receivable for Fund shares sold ........................................ 7,338,752
Dividends and interest receivable ...................................... 5,474,038
Deferred organization expenses ......................................... 9,657
Other assets ........................................................... 22,302
-------------
Total assets ........................................................... 922,237,912
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased ...................................... 4,942,245
Payable for Fund shares redeemed ....................................... 1,185,831
Accrued management fee ................................................. 912,990
Other payables and accrued expenses .................................... 651,693
-------------
Total liabilities ...................................................... 7,692,759
----------------------------------------------------------------------------------------
Net assets, at market value $ 914,545,153
----------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Net assets consist of:
Undistributed net investment income .................................... 4,164,818
Unrealized appreciation (depreciation) on:
Investments ......................................................... 224,274,425
Foreign currency related transactions ............................... (4,459)
Accumulated net realized loss .......................................... (61,262,928)
Paid-in capital ........................................................ 747,373,297
----------------------------------------------------------------------------------------
Net assets, at market value $ 914,545,153
----------------------------------------------------------------------------------------
Net Asset Value
- ------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
($914,545,153/35,659,395 shares of capital stock outstanding, -------------
$.01 par value, 100,000,000 shares authorized) ...................... $25.65
-------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12 -- Scudder Latin America Fund
<PAGE>
Statement of Operations
six months ended April 30, 1997
<TABLE>
<CAPTION>
<S> <C>
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------
Dividends (net of foreign taxes withheld of $384,439) .................. $ 12,620,499
Interest ............................................................... 1,379,310
--------------
13,999,809
--------------
Expenses:
Management fee ......................................................... 4,688,302
Services to shareholders ............................................... 1,366,120
Custodian and accounting fees .......................................... 1,045,292
Directors' fees and expenses ........................................... 26,105
Reports to shareholders ................................................ 129,525
Auditing ............................................................... 43,515
Legal .................................................................. 5,698
Registration fees ...................................................... 74,686
Amortization of organization expenses .................................. 7,980
Other .................................................................. 33,450
--------------
7,420,673
-----------------------------------------------------------------------------------------
Net investment income 6,579,136
-----------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investment transactions
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments ............................................................ 12,595,286
Foreign currency related transactions .................................. (373,018)
--------------
12,222,268
--------------
Net unrealized appreciation (depreciation) during the period on:
Investments ............................................................ 145,428,353
Foreign currency related transactions .................................. 19,100
--------------
145,447,453
-----------------------------------------------------------------------------------------
Net gain on investment transactions 157,669,721
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 164,248,857
-----------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13 -- Scudder Latin America Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income ...................................... $ 6,579,136 $ 7,818,361
Net realized gain (loss) from investment transactions ...... 12,222,268 (6,217,760)
Net unrealized appreciation on investment transactions
during the period........................................ 145,447,453 136,952,370
-------------- --------------
Net increase in net assets resulting from operations ....... 164,248,857 138,552,971
-------------- --------------
Distributions to shareholders from net investment income ... (7,655,243) (4,560,568)
-------------- --------------
Fund share transactions:
Proceeds from shares sold .................................. 307,985,293 119,002,707
Net asset value of shares issued to shareholders in
reinvestment of distributions ........................... 7,123,139 4,261,866
Cost of shares redeemed .................................... (179,071,583) (154,821,892)
Redemption fees ............................................ -- 226,801
-------------- --------------
Net increase (decrease) in net assets from Fund share
transactions ............................................ 136,036,849 (31,330,518)
-------------- --------------
Increase (decrease) in net assets .......................... 292,630,463 102,661,885
Net assets at beginning of period .......................... 621,914,690 519,252,805
Net assets at end of period (including undistributed net
investment income of $4,164,818 and $5,240,925, -------------- --------------
respectively) ........................................... $914,545,153 $621,914,690
-------------- --------------
Other Information
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Fund shares
Shares outstanding at beginning of period .................. 30,148,974 32,011,664
-------------- --------------
Shares sold ................................................ 12,746,126 6,222,218
Shares issued to shareholders in reinvestment of
distributions ........................................... 334,106 250,550
Shares redeemed ............................................ (7,569,811) (8,335,458)
-------------- --------------
Net increase (decrease) in Fund shares ..................... 5,510,421 (1,862,690)
-------------- --------------
Shares outstanding at end of period ........................ 35,659,395 30,148,974
-------------- --------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14 -- Scudder Latin America Fund
<PAGE>
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
For the Period
December 8,
1992
Six Months (commencement
Ended Years Ended October 31, of operations) to
April 30, October 31,
1997 (a) 1996 (a) 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------
Net asset value, beginning of period ............. 20.63 16.22 24.44 18.41 12.00
Income from investment operations: ---------------------------------------------------------------------------
Net investment income (loss) ..................... .20 .25 .09 (.03) .03
Net realized and unrealized gain (loss) on
investment transactions ....................... 5.08 4.30 (7.62) 6.10 6.36
---------------------------------------------------------------------------
Total from investment operations ................. 5.28 4.55 (7.53) 6.07 6.39
Less distributions: ---------------------------------------------------------------------------
From net investment income ....................... (.26) (.15) -- -- --
In excess of net investment income ............... -- -- -- (.06) --
From net realized gains on investment
transactions .................................. -- -- (.73) (.06) --
---------------------------------------------------------------------------
Total distributions .............................. (.26) (.15) (.73) (.12) --
---------------------------------------------------------------------------
Redemption fees ................................... -- .01 .04 .08 .02
---------------------------------------------------------------------------
Net asset value, end of period ................... 25.65 20.63 16.22 24.44 18.41
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return (%) ................................. 25.85** 28.31 (30.96) 33.43 53.42**
Ratios and Supplemental Data
Net assets, end of period ($ millions) ........... 915 622 519 809 261
Ratio of operating expenses, net to average
daily net assets (%) .......................... 2.00* 1.96 2.08 2.01 2.00*
Ratio of operating expenses before expense
reductions, to average daily net assets (%).... 2.00* 1.96 2.11 2.05 2.69*
Ratio of net investment income (loss) to
average daily net assets (%) .................. 1.78* 1.32 .52 (.20) .44*
Portfolio turnover rate (%) ...................... 21.3* 22.4 39.5 22.4 4.6*
Average commission rate paid (b) ................. $.0001 $.0001 -- -- --
</TABLE>
(a) Based on monthly average of shares outstanding during the period.
(b) Average commission rate paid per share of common and preferred stocks is
calculated for fiscal years ending on or after October 31, 1996.
* Annualized
** Not annualized
15 -- Scudder Latin America Fund
<PAGE>
Notes to Financial Statements
A. Significant Accounting Policies
Scudder Latin America Fund (the "Fund") is a non-diversified series of Scudder
International Fund, Inc. (the "Corporation"). The Corporation is organized as a
Maryland corporation and is registered under the Investment Company Act of 1940,
as amended, as an open-end, management investment company.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
The policies described below are followed consistently by the Fund in the
preparation of its financial statements.
Security Valuation. Portfolio securities which are traded on U.S. or foreign
stock exchanges are valued at the most recent sale price reported on the
exchange on which the security is traded most extensively. If no sale occurred,
the security is then valued at the calculated mean between the most recent bid
and asked quotations. If there are no such bid and asked quotations, the most
recent bid quotation is used. Securities quoted on the Nasdaq System, for which
there have been sales, are valued at the most recent sale price reported on such
system. If there are no such sales, the value is the high or "inside" bid
quotation. Securities which are not quoted on the Nasdaq System but are traded
in another over-the-counter market are valued at the most recent sale price on
such market. If no sale occurred, the security is then valued at the calculated
mean between the most recent bid and asked quotations. If there are no such bid
and asked quotations, the most recent bid quotation shall be used. Short-term
investments having a maturity of sixty days or less are valued at amortized
cost. All other securities are valued at their fair value as determined in good
faith by the Valuation Committee of the Board of Directors.
Repurchase Agreements. The Fund may enter into repurchase agreements with
certain banks and broker/dealers whereby the Fund, through its custodian,
receives delivery of the underlying securities, the amount of which at the time
of purchase and each subsequent business day is required to be maintained at
such a level that the market value, depending on the maturity of the repurchase
agreement, is equal to at least 100.5% of the repurchase price.
Foreign Currency Translations. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency transactions are translated into U.S. dollars
on the following basis:
(i) market value of investment securities, other assets and liabilities at
the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the daily rates of exchange prevailing on
the respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments which
is due to changes in foreign exchange rates from that which is due to changes in
market prices of the investments. Such fluctuations are included with the net
realized and unrealized gains and losses from investments.
Net realized and unrealized gain (loss) from foreign currency related
transactions includes gains and losses between trade and settlement dates on
securities transactions, gains and losses arising from the sales of foreign
currency, and gains and losses between the ex and payment dates on dividends,
interest and foreign withholding taxes.
Forward Foreign Currency Exchange Contracts. A forward foreign currency exchange
contract (forward contract) is a commitment to purchase or sell a foreign
currency at the settlement date at a negotiated rate. During the period, the
Fund
16 -- Scudder Latin America Fund
<PAGE>
utilized forward contracts as a hedge in connection with portfolio purchases and
sales of securities denominated in foreign currencies.
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain/loss is recorded daily. Forward
contracts having the same settlement date and broker are offset and any gain
(loss) is realized on the date of offset; otherwise, gain (loss) is realized on
settlement date. Realized and unrealized gains and losses which represent the
difference between the value of the forward contract to buy and the forward
contract to sell are included in net realized and unrealized gain (loss) from
foreign currency related transactions.
Certain risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their contracts. Additionally,
when utilizing forward contracts to hedge, the Fund gives up the opportunity to
profit from favorable exchange rate movements during the term of the contract.
Federal Income Taxes. The Fund's policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of its taxable income to its shareholders. Accordingly,
the Fund paid no federal income taxes and no federal income tax provision was
required.
As of October 31, 1996, the Fund had a net tax basis capital loss carryforward
of approximately $65,670,000, which may be applied against any realized net
taxable capital gains of each succeeding year until fully utilized or until
October 31, 2003, ($59,152,000) and October 31, 2004, ($6,518,000), the
respective expiration dates, whichever occurs first.
Redemption Fees. Shares of the Fund may be redeemed at net asset value. However,
until September 5, 1996, upon the redemption or exchange of shares held by
shareholders for less than one year, a fee of 2% of the lower of cost or the
current net asset value of the shares was assessed and retained by the Fund for
the benefit of the remaining shareholders. The redemption fee was included as an
addition to paid-in-capital.
Distribution of Income and Gains. Distribution of net investment income is made
annually. During any particular year net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be
taxable to the Fund if not distributed and, therefore, will be distributed to
shareholders annually. An additional distribution may be made to the extent
necessary to avoid the payment of a four percent federal excise tax. Earnings
and profits distributed to shareholders on redemption of Fund shares ("tax
equalization") may be utilized by the Fund, to the extent permissible, as part
of the Fund's dividends paid deduction on its federal tax returns.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. These
differences primarily relate to investments in foreign denominated investments,
passive foreign investment companies, and certain securities sold at a loss. As
a result, net investment income (loss) and net realized gain (loss) on
investment transactions for a reporting period may differ significantly from
distributions during such period. Accordingly, the Fund may periodically make
reclassifications among certain of its capital accounts without impacting the
net asset value of the Fund.
The Fund uses the identified cost method for determining realized gain or loss
on investments for both financial and federal income tax reporting purposes.
Organization Costs. Costs incurred by the Fund in connection with its
organization and initial registration of shares have been deferred and are being
amortized on a straight-line basis over a five-year period.
17 -- Scudder Latin America Fund
<PAGE>
Other. Investment security transactions are accounted for on a trade-date basis.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Dividend
income from certain portfolio companies may fluctuate significantly from year to
year due to dividend distribution policies of such companies.
B. Purchases and Sales of Securities
For the six months ended April 30, 1997, purchases and sales of investment
securities (excluding short-term investments) aggregated $161,389,768 and
$71,300,640, respectively.
C. Related Parties
Under the Investment Management Agreement (the "Agreement") with Scudder,
Stevens & Clark, Inc. (the "Adviser"), the Adviser directs the investments of
the Fund in accordance with its investment objective, policies, and
restrictions. The Adviser determines the securities, instruments, and other
contracts relating to investments to be purchased, sold or entered into by the
Fund. In addition to portfolio management services, the Adviser provides certain
administrative services in accordance with the Agreement. The management fee
payable under the Agreement is equal to an annual rate of 1.25% of the Fund's
average daily net assets, computed and accrued daily and payable monthly. For
the six months ended April 30, 1997, the fee pursuant to the Agreement
aggregated $4,688,302.
Scudder Service Corporation ("SSC"), a subsidiary of the Adviser, is the
transfer, dividend paying and shareholder service agent for the Fund. For the
six months ended April 30, 1997, the amount charged to the Fund by SSC
aggregated $1,197,862, of which $194,113 is unpaid at April 30, 1997.
Scudder Trust Company ("STC"), a subsidiary of the Adviser, provides
recordkeeping and other services in connection with certain retirement and
employee benefit plans invested in the Fund. For the six months ended April 30,
1997, the amount charged to the Fund by STC aggregated $10,656, of which $2,000
is unpaid at April 30, 1997.
Scudder Fund Accounting Corporation ("SFAC"), a subsidiary of the Adviser, is
responsible for determining the daily net asset value per share and maintaining
the portfolio and general accounting records of the Fund. For the six months
ended April 30, 1997, the amount charged to the Fund by SFAC aggregated
$192,588, of which $37,571 is unpaid at April 30, 1997.
The Fund pays each of its Director not affiliated with the Adviser $4,000
annually, plus specified amounts for attended board and committee meetings. For
the six months ended April 30, 1997, Directors' fees and expenses aggregated
$26,105.
D. Investing in Emerging Markets
Investing in emerging markets may involve special risks and considerations not
typically associated with investing in the United States. These risks include
revaluation of currencies, high rates of inflation, repatriation restrictions on
income and capital, and future adverse political and economic developments.
Moreover, securities issued in these markets may be less liquid, subject to
government ownership controls, delayed settlements, and their prices more
volatile than those of comparable securities in the United States.
18 -- Scudder Latin America Fund
<PAGE>
E. Lines of Credit
The Fund and several affiliated Funds (the "Participants") share in a $500
million revolving credit facility for temporary or emergency purposes, including
the meeting of redemption requests that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated among each of the Participants. Interest is calculated based
on the market rates at the time of the borrowing. The Fund may borrow up to a
maximum of 25 percent of its net assets under the agreement. In addition, the
Fund also maintains an uncommitted line of credit.
19 -- Scudder Latin America Fund
<PAGE>
Report of Independent Accountants
To the Board of Directors of Scudder International Fund, Inc. and to the
Shareholders of Scudder Latin America Fund:
We have audited the accompanying statement of assets and liabilities of Scudder
Latin America Fund including the investment portfolio, as of April 30, 1997, and
the related statement of operations for the six months then ended, the
statements of changes in net assets for the six months then ended and for the
year ended October 31, 1996, and the financial highlights for the six months
ended April 30, 1997, for each of the three years in the period ended October
31, 1996 and for the period December 8, 1992 (commencement of operations) to
October 31, 1993. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1997, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Scudder Latin America Fund as of April 30, 1997, the results of its operations
for the six months then ended, the changes in its net assets for the six months
then ended and for the year ended October 31, 1996, and the financial highlights
for the six months ended April 30, 1997, for each of the three years in the
period ended October 31, 1996 and for the period December 8, 1992 (commencement
of operations) to October 31, 1993 in conformity with generally accepted
accounting principles.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
June 16, 1997
20 -- Scudder Latin America Fund
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21 -- Scudder Latin America Fund
<PAGE>
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22 -- Scudder Latin America Fund
<PAGE>
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23 -- Scudder Latin America Fund
<PAGE>
Officers and Directors
Daniel Pierce*
Chairman of the Board and Director
Nicholas Bratt*
President and Director
Paul Bancroft III
Director; Venture Capitalist and Consultant
Thomas J. Devine
Director; Consultant
Keith R. Fox
Director; President, Exeter Capital Management Corporation
William H. Gleysteen, Jr.
Director; President, The Japan Society, Inc.
Dudley Ladd*
Director
William H. Luers
Director; President, The Metropolitan Museum of Art
Wilson Nolen
Director; Consultant
Kathryn L. Quirk*
Director, Vice President and Assistant Secretary
Dr. Gordon Shillinglaw
Director; Professor Emeritus of Accounting, Columbia
University Graduate School of Business
Robert W. Lear
Honorary Director; Executive-in-Residence, Visiting Professor,
Columbia University Graduate School of Business
Robert G. Stone, Jr.
Honorary Director; Chairman of the Board and Director, Kirby Corporation
Elizabeth J. Allan*
Vice President
Joyce E. Cornell*
Vice President
Carol L. Franklin*
Vice President
Edmund B. Games, Jr.*
Vice President
Jerard K. Hartman*
Vice President
Thomas W. Joseph*
Vice President
David S. Lee*
Vice President and Assistant Treasurer
Thomas F. McDonough*
Vice President and Secretary
Pamela A. McGrath*
Vice President and Treasurer
Edward J. O'Connell*
Vice President and Assistant Treasurer
Richard W. Desmond*
Assistant Secretary
* Scudder, Stevens & Clark, Inc.
24 -- Scudder Latin America Fund
<PAGE>
Investment Products and Services
The Scudder Family of Funds+++
- --------------------------------------------------------------------------------
Money Market
- ------------
Scudder U.S. Treasury Money Fund
Scudder Cash Investment Trust
Tax Free Money Market+
- ----------------------
Scudder Tax Free Money Fund
Scudder California Tax Free Money Fund*
Scudder New York Tax Free Money Fund*
Tax Free+
- ---------
Scudder Limited Term Tax Free Fund
Scudder Medium Term Tax Free Fund
Scudder Managed Municipal Bonds
Scudder High Yield Tax Free Fund
Scudder California Tax Free Fund*
Scudder Massachusetts Limited Term
Tax Free Fund*
Scudder Massachusetts Tax Free Fund*
Scudder New York Tax Free Fund*
Scudder Ohio Tax Free Fund*
Scudder Pennsylvania Tax Free Fund*
U.S. Income
- -----------
Scudder Short Term Bond Fund
Scudder Zero Coupon 2000 Fund
Scudder GNMA Fund
Scudder Income Fund
Scudder High Yield Bond Fund
Global Income
- -------------
Scudder Global Bond Fund
Scudder International Bond Fund
Scudder Emerging Markets Income Fund
Asset Allocation
- ----------------
Scudder Pathway Conservative Portfolio
Scudder Pathway Balanced Portfolio
Scudder Pathway Growth Portfolio
Scudder Pathway International Portfolio
U.S. Growth and Income
- ----------------------
Scudder Balanced Fund
Scudder Growth and Income Fund
U.S. Growth
- -----------
Value
Scudder Large Company Value Fund
Scudder Value Fund
Scudder Small Company Value Fund
Scudder Micro Cap Fund
Growth
Scudder Classic Growth Fund
Scudder Large Company Growth Fund
Scudder Development Fund
Scudder 21st Century Growth Fund
Global Growth
- -------------
Worldwide
Scudder Global Fund
Scudder International Growth
and Income Fund
Scudder International Fund
Scudder Global Discovery Fund
Scudder Emerging Markets Growth Fund
Scudder Gold Fund
Regional
Scudder Greater Europe Growth Fund
Scudder Pacific Opportunities Fund
Scudder Latin America Fund
The Japan Fund
Retirement Programs
- -------------------
IRA
SEP IRA
Keogh Plan
401(k), 403(b) Plans
Scudder Horizon Plan *+++ +++
(a variable annuity)
Closed-End Funds#
- --------------------------------------------------------------------------------
The Argentina Fund, Inc.
The Brazil Fund, Inc.
The First Iberian Fund, Inc.
The Korea Fund, Inc.
The Latin America Dollar Income Fund, Inc.
Montgomery Street Income Securities, Inc.
Scudder New Asia Fund, Inc.
Scudder New Europe Fund, Inc.
Scudder World Income Opportunities
Fund, Inc.
For complete information on any of the above Scudder funds, including management
fees and expenses, call or write for a free prospectus. Read it carefully before
you invest or send money. +++Funds within categories are listed in order from
expected least risk to most risk. +A portion of the income from the tax-free
funds may be subject to federal, state, and local taxes. *Not available in all
states. +++ +++A no-load variable annuity contract provided by Charter National
Life Insurance Company and its affiliate, offered by Scudder's insurance
agencies, 1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark,
Inc., are traded on various stock exchanges.
25 -- Scudder Latin America Fund
<PAGE>
Scudder Solutions
<TABLE>
<CAPTION>
Convenient ways to invest, quickly and reliably:
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Automatic Investment Plan AutoBuy
A convenient investment program in which you designate Lets you purchase Scudder fund shares
the purchase details and the bank account, and money is electronically, avoiding potential mailing delays;
electronically debited from that account monthly to designate a bank account and the transaction
regularly purchase fund shares and "dollar cost average" details, and money for each of your transactions is
-- buy more shares when the fund's price is lower and electronically debited from that account.
fewer when it's higher, which can reduce your average
purchase price over time.
Automatic Dividend Transfer Payroll Deduction and Direct Deposit
The most timely, reliable, and convenient way to Have all or part of your paycheck -- even government
purchase shares -- use distributions from one Scudder checks -- invested in up to four Scudder funds at
fund to purchase shares in another, automatically one time.
(accounts with identical registrations or the same
social security or tax identification number).
Dollar cost averaging involves continuous investment in securities regardless of price
fluctuations and does not assure a profit or protect against loss in declining markets.
Investors should consider their ability to continue such a plan through periods of low price
levels.
Around-the-clock electronic account service and information, including some transactions:
- ------------------------------------------------------------------------------------------------------------------------------
Scudder Automated Information Line: SAIL(TM) -- Scudder's Web Site -- http://funds.scudder.com
1-800-343-2890
Scudder Electronic Account Services: Offering
Personalized account information, the ability to account information and transactions, interactive
exchange or redeem shares, and information on other worksheets, prospectuses and applications for all
Scudder funds and services via touchtone telephone. Scudder funds, plus your current asset allocation,
whenever you need them. Scudder's Site also
provides news about Scudder funds, retirement
planning information, and more.
Retirees and those who depend on investment proceeds for living expenses can enjoy these convenient,
timely, and reliable automated withdrawal programs:
- ------------------------------------------------------------------------------------------------------------------------------
Automatic Withdrawal Plan AutoSell
You designate the bank account, determine the schedule Provides speedy access to your money by
(as frequently as once a month) and amount of the electronically crediting your redemption proceeds
redemptions, and Scudder does the rest. to the bank account you designate.
DistributionsDirect
Automatically deposits your fund distributions into the
bank account you designate within three business days
after each distribution is paid.
For more information about these services, call a Scudder representative at 1-800-225-5163
- ------------------------------------------------------------------------------------------------------------------------------
26 -- Scudder Latin America Fund
<PAGE>
Mutual Funds and More -- Brokerage and Guidance Services:
- ------------------------------------------------------------------------------------------------------------------------------
Scudder Brokerage Services Scudder Portfolio Builder
Offers you access to a world of investments, A free service designed to help suggest ways investors like
including stocks, corporate bonds, Treasuries, plus you can diversify your portfolio among domestic and global,
over 6,000 mutual funds from at least 150 mutual as well as equity, fixed-income, and money market funds,
fund companies. And Scudder Fund Folio(SM) provides using Scudder funds.
investors with access to a marketplace of more than
500 no-load funds from well-known companies--with no Personal Counsel from Scudder(SM)
transaction fees or commissions. Scudder
shareholders can take advantage of a Scudder Developed for investors who prefer the benefits of no-load
Brokerage account already reserved for them, with Scudder funds but want ongoing professional assistance in
no minimum investment. For information about managing a portfolio. Personal Counsel(SM) is a highly
Scudder Brokerage Services, call 1-800-700-0820. customized, fee-based asset management service for
individuals investing $100,000 or more.
Fund Folio funds held less than six months will be charged a fee for redemptions. You can buy
shares directly from the fund itself or its principal underwriter or distributor without
paying this fee. Scudder Brokerage Services, Inc., 42 Longwater Drive, Norwell, MA 02061.
Member SIPC.
Personal Counsel From Scudder(SM) and Personal Counsel(SM) are service marks of and represent a
program offered by Scudder Investor Services, Inc., Adviser.
For more information about these services, call a Scudder representative at 1-800-225-5163
- ------------------------------------------------------------------------------------------------------------------------------
Additional Information on How to Contact Scudder:
- ------------------------------------------------------------------------------------------------------------------------------
For existing account services and transactions Please address all written correspondence to
Scudder Investor Relations -- 1-800-225-5163 The Scudder Funds
P.O. Box 2291
For establishing 401(k) and 403(b) plans Boston, Massachusetts
Scudder Defined Contribution Services -- 02107-2291
1-800-323-6105
Or Stop by a Scudder Funds Center
For information about The Scudder Funds, including Many shareholders enjoy the personal, one-on-one service of
additional applications and prospectuses, or for the Scudder Funds Centers. Check for a Funds Center near
answers to investment questions you -- they can be found in the following cities:
Scudder Investor Relations -- 1-800-225-2470 Boca Raton Chicago San Francisco
[email protected] Boston New York
- ------------------------------------------------------------------------------------------------------------------------------
New From Scudder: Pathway Series
In a complex financial world, Scudder Pathway Series is a refreshingly simple concept. With one
investment, Pathway gives you instant access to broad diversification in U.S. markets and
across the globe. Select from four Portfolios -- Conservative, Balanced, Growth, or
International -- each with a distinct investment objective that can match your goals. Each
Portfolio, rather than investing in individual securities, invests in carefully selected
Scudder mutual funds.
- ------------------------------------------------------------------------------------------------------------------------------
The share price of each Pathway Series portfolio will fluctuate and the risk associated with
each portfolio is determined by the securities held in each underlying Scudder fund. Contact
Scudder Investor Services, Inc., Distributor, for a prospectus which contains more complete
information, including management fees and other expenses. Please read it carefully before you
invest or send money.
</TABLE>
27 -- Scudder Latin America Fund
<PAGE>
Celebrating Over 75 Years of Serving Investors
Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven Clark,
Scudder, Stevens & Clark was the first independent investment counsel firm in
the United States. Since its birth, Scudder's pioneering spirit and commitment
to professional long-term investment management have helped shape the investment
industry. In 1928, we introduced the nation's first no-load mutual fund. Today
we offer over 40 pure no load(TM) funds, including the first international
mutual fund offered to U.S. investors.
Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by
individual investors.
SCUDDER [LOGO]
